Sri Lanka concerned over IMF link in Japan expressway loan: report
Mar 24, 2019 18:00 PM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - A loan from Japan to build an expressway has an exit clause where Sri Lanka has to repay it if a program with the International Monetary Fund is cancelled or disbursement withheld, a media report said.
Sri Lanka's The Sunday Times newspaper said the lender had wanted disputes to be arbitrated in Japan instead of a neutral venue like Singapore or UK.
The report quoted Priyantha Ratnayake, director general of the external resources department of the Treasury as saying that Sri Lanka was not agreeable to such conditions and it would also set a precedent for other credit.
In case of bribery, also, the lenders wanted the money back.
In 2018, Sri Lanka's cabinet gave approval to borrow 100 billion yen from MUFG Bank at .27 percent. (Colombo/Mar24/2019-SB)